Healthcare Revenue Cycle Management Market Size By Product (Integrated, Standalone), By Deployment (On-Premise, Cloud Based), By Component (Services, Software), By End User (Hospitals, Physicians, Diagnostic & Ambulatory Care Centers), Industry Analysis Report, Regional Outlook (U.S., Canada, Germany, UK, France, Spain, Italy, China, India, Japan, Brazil, Mexico, South Africa, Saudi Arabia), Growth Potential, Competitive Market Share & Forecast, 2016 - 2024

Industry Trends

Healthcare Revenue Cycle Management Market size was over USD 39 billion in 2015 and forecast to grow with more than 11% CAGR from 2016 to 2024.
 

Germany Healthcare Revenue Cycle Management Market Size, By Component, 2012-2024 (USD Bn)

 

Rising healthcare expenditure has resulted in growing need for governments to implement cost cutting measures. According to CMS, U.S. healthcare spending is anticipated to grow at an average 5.6% per year from 2016 to 2025. Increase in healthcare spending should drive revenue.
 

Increasing complexity in medical coding for bill reimbursements is anticipated to drive the healthcare revenue cycle management market. The revenue cycle management solutions are meant to reduce billing errors by health care providers and are widely used in countries such as the U.S. where medical coding process is complex and tedious. Additionally, reduction in health care reimbursements by government and private bodies and rising rate of claim denials will induce large number of health care providers to adopt revenue cycle management practices.
 

Compliance to frequent amendments in regulations, limited accessibility to patient data, high associated cost and lack of trained professionals may hamper the industry growth. Adherence to guidelines such as ICD-10, ACA, and 340B have supplemented to the complexity of healthcare provision.
 

Healthcare Revenue Cycle Management Market, By Product

Integrated healthcare revenue cycle management market size was valued at over USD 34 billion grabbing over 85% of revenue share in 2015 due to the increasing shift in the healthcare business from volume based payment to value based systems. Majority of physicians prefer integrated software in order to cope with declining profitability owing to inefficient standalone billing technologies, and diminishing reimbursements. Physicians anticipate practice dissolution to large physician groups in case of not using upgraded, and integrated revenue cycle management products. Most of the buyers are interested in purchasing integrated revenue cycle management solutions comprising of electronic health records, medical billing, and patient scheduling applications among others.
 

Healthcare Revenue Cycle Management Market, By Deployment

Cloud-based revenue cycle management solution is the major industry shareholder, with target market size slated to exceed USD 80 billion by 2024, due to increasing demand for better consumer platforms at affordable costs. The number of application service providers has recently increased in response to the growing trend for revenue cycle management outsourcing. Cloud-based solutions are relatively less expensive in comparison to the on-premise systems, and allow businesses to avoid IT hardware and support IT staff costs. Thus, the affordable costs and convenience of implementation should make cloud deployment as a popular deployment model over the forecast period.
 

Healthcare Revenue Cycle Management Market, By Component

Healthcare revenue cycle management services held more than 63% industry share in 2015, with target market size slated to reach around USD 70 billion by 2024, due to frequent update introductions in software. The healthcare revenue cycle management market is expected to grow at a stable CAGR of over 11.5% during the forecast timeframe.
 

Development of healthcare IT with big data analytics has largely influenced implementation of various solutions such as e-prescribing systems, and electronic medical records, among others. Growing demand to integrate healthcare systems coupled with increased funding is further set to fuel the revenue cycle management market growth. For instance, government initiatives such as Medicare, Medicaid and e-Health to implement healthcare IT solutions should spur healthcare revenue cycle management market growth.
 

Healthcare Revenue Cycle Management Market, By End User

Physicians including physician billing organizations held more than 40% of healthcare revenue cycle management market share in 2015, growing at healthy 12.3% CAGR from 2016 to 2024.  With an effective revenue cycle management solution, physicians and physician owned organisations can streamline the processes and improve claim submission and maximize collections. The billing organizations offer rapid and smooth delivery of processes allowing physicians to focus on quality patient care delivery.
 

Majority of healthcare service providers spend significant amount of time on administrative tasks allowing less time to focus on patient care leading to organizational profit cuts. Most of medical practice income losses occur due to improper billing and ICD-10 coding, responsible for majority of case denials. These concerns could be addressed by adoption of healthcare revenue cycle management solutions over the forecast period.
 

Healthcare Revenue Cycle Management Market, By Region

U.S. healthcare revenue cycle management market size is set to surpass USD 38 billion by 2024. Stringent regulatory compliance and presence of leading industry players in this region will lift the revenue cycle management solutions demand. The country healthcare system has experienced substantial changes, mainly due to implementation of the Affordable Care Act. Coding system evolution and regulatory changes have transformed the way the U.S. healthcare system operates and have forced the providers to deliver maximum value to patients with lowering the expenses.
 

Germany and UK healthcare revenue cycle management market are set to witness robust growth of over 11% from 2016 to 2024. Presence of high unmet need to modernized revenue cycle management solutions should offer significant regional industry growth opportunities over the forecast period. Regional players are making efforts to develop and provide customized revenue cycle management solutions. China healthcare revenue cycle management market size is slated to exceed USD 5 billion by 2024 due to increasing geriatric population base, increasing demand for insurance, growing prevalence of chronic diseases and increased adoption of healthcare information technologies.
 

Competitive Market Share

Some of the notable industry players operating in healthcare revenue cycle management market include Allscripts Healthcare Solutions, Athenahealth, CareCloud, Cerner, Experian, GE Healthcare, McKesson, Quest Diagnostics, and Siemens Healthcare among others. Various hospitals are looking towards alternative payment models offering vendors, eventually encouraging large number of companies to provide revenue cycle management solutions.
 

New product launches and frequent upgrades in the existing software are some of the major strategies adopted by market players to sustain significant position in the industry.
 

Healthcare Revenue Cycle Management Industry Background

Healthcare revenue cycle management market is undergoing a rapid evolution. As payment models shift with improvement, providers will need more support from vendors. In an increasing business of healthcare, patients are using different channels to make payments for the services received at hospitals or clinic. With more than 90 percent of the consumers preferring online payments mode in developing nations, association with a trusted medical billing partner has proven to be helpful for organizations to improve their business and reduce the number of claim denials. Current health regulations, everchanging customer’s preferences, and increasing business competition have made it important for the providers to look for innovative ways to improve customer satisfaction, involvement rates and profits.

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